Unfazed by Accounting Woes, Salix Bidders Drive Up Deal Price

An accounting scandal, a failed merger and the departure of top executives would normally make a company toxic to acquirers. Not for Salix Pharmaceuticals Ltd., the subject of a $11 billion bidding war that drove the drugmaker’s stock close to its highest-ever price.

In filings this month, Salix restated seven quarters worth of results, explaining how it put sales in the wrong period, counted rebates as business expenses and failed to account for millions of dollars in potential product returns. The Securities and Exchange Commission is investigating possible violations of the law.